The World Bank has said that despite the expansion of the Nigeria’s economy and the revenue increase, poverty rate remains alarmingly high, declaring that 139 million Nigerians are living in poverty in 2025 despite the economic reforms embarked upon by President Bola Ahmed Tinubu.
Country Director, World Bank Nigeria, Mathew Verghis, spoke in Abuja at the launch of the Nigerian Development Update where the bank also projected that Nigeria’s economy would grow by 4.4 per cent in 2027.
The World Bank’s verdict is coming a few weeks after Tinubu praised his government for the economic rebound being witnessed in the country, announcing that Nigeria has “turned the corner” on its economic and social challenges, assuring citizens that the sacrifices of the past two years were beginning to yield measurable results.
During a live nationwide broadcast to commemorate Nigeria’s 65th Independence anniversary, Tinubu stressed that his administration’s reforms were already repositioning the country on the path of stability, growth and self-sufficiency.
“I am pleased to report that we have finally turned the corner. The worst is over. Yesterday’s pains are giving way to relief. I salute your endurance, support and understanding,” the president said. “I will continue to work for you and justify the confidence you reposed in me to steer the ship of our nation to a safe harbour.”
Meanwhile, The Presidency has rejected the World Bank’s report estimating that 139 million Nigerians are living in poverty, saying the figures do not reflect current realities under President Tinubu’s administration.
In a statement, the Special Adviser to the President on Media and Public Communication, Sunday Dare, said the data quoted by the World Bank must be properly contextualised, noting that it is based on historical and modelled estimates rather than real-time assessments.
But the World Bank’s Country Director said: “So, these results are exactly what you need to see in a stabilisation. These are big achievements. However, despite these stabilisation gains, many Nigerians are still struggling. Most households are struggling with eroded purchasing power.
“In 2025, we estimate that 139 million Nigerians live in poverty. So, the challenge is clear: how to translate the gains from the stabilisation reforms into better living standards for all.”
He stated that the federal government must reduce inflation, particularly food inflation, ensure effective use of public funds and expand safety nets, to address the high rate of poverty in the country and ensure that citizens enjoy the gains of reforms.
“Food inflation affects everybody but particularly the poor and has the potential to undermine political support for the reforms. Use public resources more effectively ensuring that spending drives real development results that benefit people and three, expanding the safety net so that the poorest and vulnerable get support,” he added.
Dare however noted that the World Bank’s estimate was derived from the global poverty benchmark of $2.15 per person per day, set in 2017 under the Purchasing Power Parity (PPP) framework, explaining that the figure, when converted to today’s exchange rate, equals about ₦100,000 per month—an amount that is above Nigeria’s new minimum wage of ₦70,000.
“The measure is an analytical construct, not a direct reflection of local income realities,” he said. “The poverty assessment under the PPP methodology relies on outdated consumption data, with Nigeria’s last major household survey conducted in 2018/2019.”
He added that the estimate does not account for the informal and subsistence sectors that sustain millions of households across the country.
The Presidency maintained that the figure should be regarded as a global model estimate, not an empirical representation of conditions in 2025, and emphasised that the country’s poverty trajectory is now one of recovery and inclusive reform.
Dare listed a range of government programmes aimed at reducing poverty and improving living standards, including:
Conditional Cash Transfers (CCT): Expanded to reach 15 million households nationwide, with over ₦297 billion disbursed since 2023.
Renewed Hope Ward Development Programme (RH-WDEP): Covering all 8,809 electoral wards, providing micro-infrastructure and social services at the community level.
National Social Investment Programmes (NSIPs): Strengthened initiatives such as N-Power, TraderMoni, MarketMoni, FarmerMoni, and the Home-Grown School Feeding Programme.
Food Security Measures: Including distribution of subsidised grains and fertilisers, mechanisation initiatives, and the revival of strategic food reserves.
Renewed Hope Infrastructure Fund (RHIF): Financing key energy, road, and housing projects to reduce living costs and boost job creation.
National Credit Guarantee Company (NCGC): Expanding access to affordable credit for small businesses, women, and youth.
The Presidency said the government is addressing long-standing structural challenges such as overdependence on imports, productivity constraints, and regional disparities.
It noted that reforms such as the removal of fuel subsidies, exchange rate unification, and fiscal redirection toward productive sectors are part of efforts to tackle the root causes of poverty and promote sustainable growth.
Dare said the World Bank itself has acknowledged that these reforms are contributing to macroeconomic stability and renewed growth momentum.
The statement added that the administration’s medium-term focus is to ensure that macroeconomic stability translates into tangible welfare gains for citizens through affordable food, quality jobs, and reliable infrastructure.
It said ongoing investments in agriculture, micro, small and medium enterprises (MSMEs), and power reliability are expected to create employment and lower living costs.
According to the Presidency, Nigerians are expected to begin seeing improvements in food prices, income levels, and purchasing power as these programmes continue to take effect.